The Liberals are promising their proposed new state-owned insurance scheme will deliver relief for Tasmanian tourism operators facing skyrocketing premiums, with some businesses reporting cost increases of up to 300% over the past two years.
The TasInsure initiative, announced last week and now attracting industry support, aims to cut insurance costs by around 20% for small tourism businesses across the state.
Premier Jeremy Rockliff said mainland insurance providers have failed regional operators who have been paying “mainland premiums for mainland insurance claims.”
“Whether you’re running a guided tour company or a local event, you deserve access to fair and reliable insurance at a Tasmanian price,” Rockliff said.
“More than half of all jobs on Tasmania’s East Coast are dependent on tourism and TasInsure will make it easier for tourism operators to turn a profit and employ more people.”
Tourism Industry Council Tasmania CEO Amy Hills welcomed the initiative, saying access to insurance has become a critical issue for many operators.
“For some of our operators, especially those in nature-based, adventure tourism, or remote and high-risk environments, the issue isn’t just the cost of insurance, it’s actually being able to access it in the first place,” Hills said.
“Operators are telling us that they’re often left with only one provider willing to insure them, if any, and that lack of competition means they face exorbitant premiums or risk operating without cover at all.”
Mike Davis from Maria Island Cruises, who has experienced a 50% insurance cost increase over two years, said the initiative would allow businesses like his to reinvest in their businesses and communities.
“The opportunity for people to be able to access a Tasmanian-owned and offered insurance scheme is something that people will feel loyal about, they will trust it,” Davis said.
However, Shadow Treasurer Josh Willie questioned the proposal’s legitimacy, labelling Rockliff a “dodgy travelling insurance salesman.”
“Jeremy Rockliff can’t be trusted while he continues to spruik his policy without releasing any information about the modelling his claims rely on,” Willie said.
